Larsen & Toubro (L&T), India’s largest engineering company, is likely to set up two manufacturing facilities — for turbines and boilers — at Hazira in Gujarat. L&T has joined hands with Japan’s Mitsubishi to float a joint venture that will build the Rs 350-crore boiler factory, while its other JV, with Toshiba for manufacturing turbines, will spend another Rs 350 crore.
The two JV agreements are likely to be signed soon, said company sources. “We had three locations in mind, including port cities of Hazira and Chennai. Now, we have almost zeroed in on Hazira, where the company’s heavy engineering complex is situated in a 200-acre property.
The company is slated to commence boiler manufacturing by 2009. The new subsidiary, L&T Power Projects, will own 51% stake in the JV company and Mitsubishi will hold 49%. Initially, the JV will start with 50 employees, to be expanded to about 1,250 people, once production gets into full swing. The joint venture with Toshiba is likely to be in 51:49 equity sharing, and the investment for setting up the plant may go up to Rs 350 crore.
(Source: Economic Times)
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